Monday, August 11, 2003


Part of the common wisdom, right? The rich can afford accountants and attorneys to avoid such things. That's what every politician would like you to believe.

Like a lot of "urban myths", the rich pay a lot of taxes, and when a regional economy (like "Silicon Valley") takes a big hit, the amount of taxes paid takes a disproportionate hit when a lot of folks who live there are "wealthy".

I didn't realize until reading this column this morning how much of an effect the taxes the rich pay can affect a state's financial health. If you read Dan Weintraub's article you'll see that the taxes paid in 2001, compared to 2000, by those in California making $1 million a year or more dropped $7 billion.

$7 billion!

How many states can take a year-over-year hit of $7 billion and survive? Well, if you're California, it seems you ignore it and spend even more. That's how you wind up with a $30+ billion deficit.

And, of course, the Democrats in California have the answer -- raise taxes.


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